In Letter No. 03-07-11/73056 issued on 9 September 2021, the Russian Ministry of Finance clarifies the VAT implications for taxpayers receiving compensation for discounts provided to end consumers. Under the terms of the contract between the customer and the taxpayer (acting as a contractor), the latter undertakes to organize marketing campaigns by offering discounts to end consumers. The costs incurred by the contractor arising from the marketing activities are compensated by the customer in an amount equal to the discounts provided to end consumers.
Source: Deloitte
Latest Posts in "Russia"
- Russia is set to increase its standard VAT rate from 20% to 22% starting in 2026
- Russia Faces Economic Uncertainty Amid VAT Hike Plans and Escalating US Sanctions
- Russian IT Industry Retains VAT Exemption, Easing Tax Pressure on Software Developers
- Russian Government Delays Removal of VAT Break for Domestic Software Developers
- Russian Small Businesses Warn Tax Hikes May Force Closures, Push Firms Into Shadow Economy
